Abstract:

Due to the economic developments in recent years, the problem-related loans in the Turkish banking sector, especially in KOBI and commercial loans, are rapidly increasing, which has a negative impact on the growth and stability of both the real sector and the banking sector. The aim of this study is to investigate whether the restructuring used as one of the most common methods in the fight against problematic loans is an effective mechanism in reducing problematic loans. The study examined the relationship of restructuring loans with problematic loans, GDP, exchange rate and interest rate variables along with the three-month data of the period 2009:1 - 2020:3 using the ADRL (Auto-Regresive Distributed Lag) Border Test Approach. According to the results of the Border Test, the existence of a long-term equalization relationship between the studied variables has been identified. Problematic loans and restructuring loans are meaningful and positive between exchange rate and interest rate; the result is that there is a meaningful and negative relationship between problematic loans and GDP, and the restructuring used as one of the most common methods in the fight against problematic loans, contrary to the expectations, increases problematic loans in the long run.